Category: CFPB

The New “Yelp.com” for the Consumer Finance Industry

The CFPB recently added a new feature to its Consumer Complaint Database: namely, consumers now have the option to publish “narratives” detailing their allegations against a company. The problem lies in the possibility that these hearsay “narratives” will be used against companies in connection with enforcement actions or lawsuits.

Why Does the CFPB Want to Curb Auto Lenders’ Discretion to Charge Higher or Lower Interest Rates?

On July 14, 2015, the Consumer Financial Protection Bureau (“CFPB”) and Department of Justice (“DOJ”) announced they had reached a “groundbreaking settlement” with American Honda Finance Corporation (“Honda”). The settlement resolves allegations that Honda engaged in racial discrimination by charging higher interest rates on auto loans to minority borrowers. But what is the legal basis for the CFPB’s supervision of auto lenders? And what methodology did the CFPB use to establish the connection between discretion in interest rate markups and racial discrimination in auto lending?

When Did Education Become a Consumer Financial Service?

The mission of the Consumer Financial Protection Bureau (“CFPB”) is to “regulate the offering and provision of consumer financial products or services under the Federal consumer financial laws.” See 12 U.S.C. § 5491(a). So why is the CFPB suing ITT Educational Services, Inc., an educational services provider?